10 Best Bank Stocks to Buy Trading Under Book Value

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1. Citigroup, Inc. (NYSE:C)

Price-to-Book Ratio: 0.89x

Market Cap: $178.02 billion

Number of Hedge Fund Holders: 96

Citigroup, Inc. (NYSE:C) is one of the best bank stocks to buy trading under book value. Citigroup, Inc. (NYSE:C) has surged 33% year-to-date, making it the top-performing major U.S. bank stock in 2025. However, according to Wells Fargo banking analyst Mike Mayo, this rally is still in its early stages. With shares currently trading around $95.35, Mayo sees a 12-month price target of $115, implying nearly 21% upside from current levels. Looking further out, he believes the stock could climb to $150 by the end of 2027.

Citi’s recent momentum has been driven by a focused restructuring strategy under CEO Jane Fraser. The bank has simplified its business into five core units, exited underperforming markets, and trimmed layers of management. As a result, it posted second-quarter earnings of $1.96 per share, up 29% year-over-year, with revenue climbing 8%.

Despite the strong performance, Citi still trades below its book value of $94, a rare discount among megabanks. Mayo points out that Citi’s transformation is far from priced in. He expects earnings to reach $10.15 per share in 2026 and nearly $12 in 2027. With a dividend yield of 2.5% and an aggressive share buyback plan that could reduce the share count by 8% in a year, Citi offers a mix of growth and value that’s becoming hard to ignore.

While we acknowledge the potential of C to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than C and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Most Profitable Consumer Stocks to Buy Now and 10 Best High-Margin Pharma Stocks to Buy Now.

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